VAT collection from petroleum product marketing surged by nearly 94% in the last fiscal year, reaching Tk 75.76 billion, up from the previous year’s Tk 39.13 billion. This substantial increase was attributed to elevated petroleum prices on the domestic market and intensified revenue collection efforts. The five petroleum-marketing companies under Bangladesh Petroleum Corporation (BPC) contributed to this growth. Despite generating significant revenue, economists raise concerns about the regressive impact of high taxes on essential inputs, causing inflationary pressure. They recommend a market-based pricing approach for petroleum products to prevent consumers from bearing the brunt of international price fluctuations. Experts also stress that the government’s taxation strategy should not hinder economic competitiveness and investment.
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